Paying regular additional payments on the loan principal will yield significant returns. You can accomplish this in various ways. Paying one extra full payment one time every year is perhaps the simplest to keep track of. However, many people won't be able to swing such a large additional expense, so dividing one additional payment into twelve extra monthly payments is a great option too. Finally, you can pay a half payment every other week. Each option yields different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
It may not be possible for you to pay more every month or even every year. Keep in mind that virtually all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this rule to pay extra on your mortgage principal any time you get some extra money. If, for example, you were to receive a surprise windfall four years into your mortgage, paying several thousand dollars into your home's principal will significantly reduce the period of your loan and save enormously on interest over the life of the loan. For most loans, even a relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.
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